Airports: Kenya vs Tanzania

Airports: Kenya vs Tanzania

Tanzania's Precision pauses expansion to focus on stability​

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Precision Air ATR42-600,
© Avions de Transport Régional

By Hilka Birns28NOV2024
Precision Air (PW, Dar es Salaam) is prioritising the revival of its fleet to stabilise its business after the impacts of Covid-19, global supply chain disruptions, engine part shortages, and rising operational costs. The airline is taking a cautious, step-by-step approach to mitigate financial risks. Once stability is achieved, it will proceed with its planned fleet expansion as part of its five-year strategy, according to Group Managing Director and CEO Patrick Mwanri.

Speaking to ch-aviation on the sidelines of the recent African Airlines Association (AFRAA) annual general assembly in Cairo, Egypt, he explained: "We are focusing on stabilising our internal operations before considering any expansion. With rising maintenance costs and other challenges, we're working to adapt to the current environment."

In 2022, the company's five-year strategy had been to expand its ATR - Avions de Transport Régionalturboprop fleet to add frequency and flexibility to its schedule. Mwanri confirmed that the private Tanzanian carrier had no intention to upgauge or expand into the jet market before stabilising its core ATR fleet.

"We're focusing on the turboprop market at this time. The good news is it has recovered to pre-Covid levels. With Tanzania's strategy to improve its tourist numbers to five million and promote its touristic destinations, we are still seeing that there is a big potential for the turboprop aircraft we operate," he explained. However, he added that the airline still ultimately plans to introduce jets for routes where it believes it could perform better.

"Progress is good, but we're not yet at the desired level. We expect to reach that target by 2026. At operating level we’re currently at a profit in some months, but there are still some challenges that affect our numbers like the exchange rate, historical issues, and other operational matters. If everything goes well, we aim to break even operationally by 2026," Mwanri said.

According to ADS-B data, the airline operates a fleet of eight ATR turboprops, of which six are currently in active service. Mwanri said the rest are delayed in maintenance due to supply-chain issues but are expected to return online one by one.

According to the ch-aviation fleets module, the fleet comprises one ATR42-500 dry-leased from Swala Leasing & Finance and two ATR42-600s leased from Precision Air's special purpose vehicle (SPV) Antelope Leasing Limited, currently stored in Dar es Salaam. The airline also has ATR72-500s leased from Swala, two of which are on C-checks and awaiting engines. It wet-leased an additional ATR72-500 from Jump Air(JUP, Vilnius) for five months earlier this year. Mwanri said Precision Air was likely to approach the Lithuanian carrier again in future should the need for additional capacity arise.

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Broadening network​

Current destinations served with the single ATR42-500 in service include domestic airports such as Dar es Salaam, Kilimanjaro, Zanzibar, Arusha, Kahama, Shinyanga, and Seronera in the Serengeti National Park, plus international routes to Nairobi Wilson(Kenya) and Hahaya and Anjouan in Comoros. The ATR72-500s mainly operate domestically and between Tanzania (Dar es Salaam, Mbeya, Mwanza, Dodoma, Zanzibar, Mtwara, and Kilimanjaro) and Nairobi Jomo Kenyatta (Kenya). It also does charter services within and outside Tanzania.

According to Mwanri, Precision Air intends to reintroduce its domestic route to Bukoba via Mwanzaover the forthcoming festive season to capitalise on holiday demand. He said the route was suspended because of capacity issues, but one of the ATR42-600s will return to service soon and be deployed on the route. Other domestic destinations to be added with the aircraft are Kahama, Shinyanga, Tanga, Iringa, and Songea.

Mwanri also sees significant potential for Precision Air with ongoing upgrades to airstrips in Tanzania, such as Iringa, which serves the southern highlands tourism region, Mtemere serving the Nyerere National Park, and the Mara airport that will serve the Serengeti National Park via the Mugumu route.

"These improvements open up new opportunities for us. Additionally, with the country joining the East African Community, we see further potential for expansion, such as to the Democratic Republic of the Congo. We are currently in talks with two clients to explore extending our operations," he said.

Meanwhile, Precision Air is finalising an agreement with the Comoros government to start flights to Moheli. The CEO said the airline is already operating 4x weekly cabotage flights between Hahaya and Anjouan in the archipelago and is looking to connect Comoros with other neighbouring countries.

On another front, Precision Air is expanding its Approved Maintenance Organisation (AMO) services, having secured various certifications. The airline currently provides maintenance services to clients such as Flightlink (YS, Dar es Salaam) and the Efatha Church, along with additional services for various customers in Tanzania. It recently supported KLM Royal Dutch Airlines with engine change services.

www.ch-aviation.com

Tanzania's Precision pauses expansion to focus on stability

Several daily Operator News updates covering all Operator Route Network changes, strategic fleet developments and aircraft orders, start-ups and bankruptcies, mergers and acquisitions and partnerships and alliances.
www.ch-aviation.com www.ch-aviation.com
 
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